...Too much debt is never a good solution to fixing an ailing economy. The allure is easy and it is understandable why countries would embark on this easy path. Yet reverting back to a more normal balance is rarely that easy. Recently our total public debt surpassed annual GDP:
Clearly this is the worst recession since the Great Depression. On the back-end, the bailout mechanisms are still fully in place. When you have solvency issues adding more debt simply pushes out the pain deeper into the future. The Federal Reserve with Quantitative Easingsold it as a way for US households to get easier access to cheap money. But if we look at interest payments we begin to realize what is going on...
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http://www.mybudget360.com/quantitative-easing-money-debt-foreign-debt-real-estate-equity-us-households-interest-rates/